How to Improve The Factors That Affect Your Fixed Ops Profits

How to Improve The Factors That Affect Your Fixed Ops Profits

One of the core drivers of dealership performance, fixed operations, is often overlooked when it comes to improving the overall profitability of a dealership. Fixed operations refer to all of the services and maintenance performed on vehicles, such as oil changes, tire rotations, and brake repairs. While the sales department is often the focus of dealership performance, optimizing fixed operations can be an important factor in improving overall profits. Let’s review how to improve the factors that affect your fixed operations profits.

Eroding Customer Loyalty

Dealers have to contend with a business environment in which customers’ relationship with the businesses they frequent has changed. To succeed in this environment, dealers must employ strategies to build brand loyalty. This can be done by creating loyalty programs that reward customers for their loyalty and offering incentives that encourage customers to visit the dealership.

Competition is Stiff and Always Getting Smarter

Dealerships face an ever-changing competitive landscape. Other businesses have become more sophisticated in their marketing and service delivery, and dealerships must adapt to stay competitive. Dealers should provide a higher quality of service and a better customer experience to ensure that customers choose their dealership over others.

Off-Warranty Vehicles are Becoming More Common

As vehicles age, fewer are covered by the manufacturer’s warranty. This means that dealerships must find ways to remain competitive when it comes to service for older vehicles. This often means offering competitive pricing, providing services that other dealerships may not offer, and offering incentives for customers to return for future service.

Demand for Vehicle Service is Soaring After Years of Postponing

Many customers have postponed vehicle service for a number of reasons, including financial constraints and fear of the pandemic. However, with the economy on the rebound, demand for vehicle service is growing. Dealerships must be prepared to meet this surge in demand by ensuring that they have the necessary personnel and resources to handle the increased demand.

Service Technicians Are in Short Supply

The shortage of qualified service technicians is a persistent problem for dealerships. To meet customer demand, dealerships should invest in employee training and development and actively recruit new employees. Additionally, dealers can take advantage of technology, such as automation and digital tools, to help reduce the need for manual labor.

Capturing Market Share is Critical to Boosting Dealer Profits

To maximize profits, dealerships must capture a larger share of their local markets. This can be done by leveraging marketing and advertising, offering competitive prices and promotions, and providing quality service and customer experience. Additionally, dealerships should focus on building relationships with customers, offering loyalty programs, and providing incentives to encourage customers to return for service.

Improve Dealership Fixed Operations With Workshops From DealerPRO Training

At DealerPRO Training, we understand the importance of optimizing dealership fixed operations. That is why we offer training and workshops that help dealerships improve their fixed operations. Our courses are designed to help dealers identify and address the key factors that affect their profitability. Contact us today to learn more about how we can help your dealership improve its fixed operations.